MONOPOLY

WHAT IS MONOPOLY ? The term monopoly consist of two words , Mono means single and Poly means seller therefore monopoly refers to market with a single seller of product. Monopoly implies a market in which there is one and the only one seller who as complete control over the supply of a commodity. Monopoly is just the opposite of perfect competition. When the production and distribution of commodity or service is manage or control by and individual or single firm it is called Monopoly According to prof. chamberlain A monopolist is one who keep the Full control over the supply of a commodity

 CONDITIONS FOR MONOPOLY 1.Only one Seller Producer :-There should be only one seller in the market of commodity or
That commodity should be produced by only one producer or one firm . In other words. The Monopolist is one firm industry 2. No Close Or Good Substitute :- there should not be any close or good substitute of the commodity sold by the seller or produced by the producer or the firm . 3. Effective Barriers In The Entry :- There should be Effective barriers in entry of new seller or producer or firm in the industry

Type of Monopoly
Natural Monopoly :When country or Region has full control over a particular commodity as it is available in that country or Region only because of natural condition , It is called natural Monopoly For Example - India enjoy Monopoly in the world in the production of Jute

Legal Monopoly :- When a person or an organisation enjoy monopoly due to the

provision of existing law of the Government , it is called Legal Monopoly For Example , patent or copy right . Such Monopoly gives give new encouragement to new invention

Social Monopoly :- When from the point of view of social Welfare the government forwards the
rights to a particular person or an organisation For the supply of a commodity service in particularly region it is called social Monopoly For example:-The Maharashtra State Electricity Board {M.S.E.B} enjoys the Monopoly Of supplying Electricity in Maharashta

Voluntary Monopoly :- When in any business or industry the businessmen or industrialists in

order to avoid Cut Throat competition come together valuntarily established a Monopoly it is called voluntary Monopoly